New Home vs. Old: How Do You Know Which is Right for You

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New Houses vs. Old: How Do You Know Which is Right for You?
Finding your perfect home is not always as easy process. With the surplus of homes for sale in most cities, buyers may find there are many properties –both new and old - that meet their search criteria. Choosing whether to renovate an old house or buy a new one can be a tricky decision for some.
Should I Completely Renovate an Old House or Buy a New House?

When deciding on which type of house is right for you, it’s important to take into consideration the following factors:


Style – For many, the allure of an older home is its character and uniqueness. Many of the homes being built today are tract houses that lack personality and quality of construction. An older home will have the charm that many buyers are looking for, rather than being a “cookie cutter” model that someone else has. However, they require a lot of TLC that many buyers aren’t cut out for. Knowing whether to choose an old house or buy a new one largely depends on your style preferences. Do you prefer clean lines, open concepts and a modern look, or are you into a more traditional floor plan with closed rooms, built-ins and nooks?


Lifestyle – Think about how you like to spend your free time. Do you enjoy working on projects, building or creating things at home? Or would you rather spend the evenings and weekends outside of the house, traveling, hiking or shopping? If you answered the latter, an old house may not make sense for you in the long-term as they typically require more maintenance and care.


Resources – Aside from the funds needed to purchase the home, do you have the budget and resources to update and maintain an old house? Even an older home that has been updated can be expensive to maintain due to scarce availability of certain building materials and original fixtures. Many buyers become “house poor” after making their down payment and buying a house. With no savings they have little budget left over for these house updates. If you don’t have the resources to dedicate to updating and maintaining the home, it may be a better choice to buy a new house. Newer houses typically need no initial repairs, no additional budget and are move-in ready.


Patience – Old houses have character, but maintaining that sense of charm doesn’t come easy. Unless they were recently updated, older homes require time and energy to restore. Because they were built in a different time period, older houses may require custom or hard-to-fit materials, appliances and fixtures that many contractors are not skilled in using. These material and construction delays can greatly extend your project deadlines.


Knowledge – Are you knowledgeable about construction and home improvement? Knowing how long restoration and maintenance projects will take and how much they will cost is a major prerequisite for purchasing an older home, especially if you’re planning to completely renovate an old home. If you’re tight on budget and resources, are you able and willing to do some of the work yourself?
An older home can be a quality investment with long-term potential and timeless style. A newer home can be a no-hassle, peaceful retreat that doesn’t require extra money or time to move in. If you do the right planning and homework ahead of time, you’ll be able to find the house that fits your needs, budget and lifestyle and relax, knowing you made the best decision in choosing your new home.

Emily Lee, Your REALTOR

5 Factors That Decide Your Credit Score

5 Factors That Decide Your Credit Score

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

1. For more on evaluating and understanding your credit score, visit www.myfico.com

Extention

Home Buyers Get Tax Credit Closing and Flood Insurance Extensions Without Lapse in Coverage; Bills Now Headed for the President


Washington, July 01, 2010



The National Association of Realtors® today commended Congress for timely passage of two bills to extend the home buyer tax credit closing deadline and reauthorize the National Flood Insurance Program. Both bills, strongly supported by NAR, had cleared the House earlier and were passed by the Senate last night. They now head to the president for his signature.



The tax credit closing deadline and the NFIP reauthorization were extended to September 30. NAR worked closely with congressional leaders on both sides of the aisle to enact these important pieces of legislation. Extending the tax credit closing and flood insurance deadlines will help provide additional stability to real estate markets across the nation, NAR said.



“What a great way to begin celebrating our nation’s most patriotic holiday by opening the door to the American dream of homeownership to thousands of home buyers who would have been shut out of the homes of their dreams through no fault of their own,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox Real Estate in Tucson, Ariz.



“We know that up to 180,000 home buyers eligible for the tax credit are rejoicing this morning. And we all thank both houses of Congress for their work to ensure passage of both bills,” Golder said. She singled out Senate Majority Leader Harry Reid (D-Nev.), Senate Minority Leader Mitch McConnell (R-Ky.), Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.), Senator Johnny Isakson (R-Ga.), House Majority Leader Steny Hoyer (D-Md.), Congresswoman Shelley Berkley (D-Nev.) and Congressman Joe Courtney (D-Conn.) for their efforts to extend the tax credit closing deadline.



The passage of H.R. 5623, the Homebuyer Assistance and Improvement Act, applies the homebuyer tax credit closing deadline extension only to homebuyers who have ratified contracts in place as of April 30, 2010, but could not close before June 30. The legislation is designed to create a seamless extension of the new closing deadline for eligible transactions to September 30. There will be no gap between June 30 and the date the president signs the bill into law.



For more information on the extension, visit www.realtor.org/government_affairs.



Senate passage of the National Flood Insurance Program Extension Act of 2010 (H.R. 5569), reauthorizes extension the NFIP until September 30, allowing currently stalled transactions to move forward. The bill is retroactive and covers the lapsed period from June 1, 2010, to the date of enactment of the extension. Any new policy applications or renewals that were signed and submitted during the lapsed period will be effective from the date of application. In the case of waiting periods, the waiting period will start from the date of application.



“We know that thousands of property owners seeking flood insurance policies will now be able to close transactions. NAR appreciates the extraordinary efforts in both houses of Congress to end the lapse in flood insurance,” Golder said. She singled out Senate Majority Leader Reid, Senate Minority Leader McConnell, Senate Banking Committee Chairman Dodd, Senator David Vitter (R-La.), House Financial Services Committee Chairman Barney Frank (D-Mass.) and Congresswoman Maxine Waters (D-Calif.) for their efforts on NFIP reauthorization.

Published by:

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Emily Lee

606-499-7836

Realty Group II

423-869-5111

Signs a Home Has Potential

Signs a Home Has Potential

The best deals on homes these days are often on properties that aren’t perfect.



Home shoppers looking for a great deal should keep these factors in mind when they are looking for a place with potential:



· Location, location, location. It’s still true that you get a better deal when you buy the worst house in a great neighborhood than you do when you buy a fancy house in a not-so terrific neighborhood.



· Less than 50 years old. Properties older than a half decade are likely to have more fundamental problems — like aging wiring, inadequate plumbing and sagging foundations.



· Livable floor plan. Buyers should select a home with a basic design they can live with. Once they start moving walls, they’re into big money.



· Light. Houses with the most potential have plenty of natural light.



· Good storage. Adding storage isn’t cheap, so it’s smart to choose a property that already has it.



Source: MSN.com, Marilyn Lewis (04/12/2010)

Emily Lee

606-499-7836

with

The Realty Group II

423-869-5111

 

 

TAX CREDIT!!!!!!

Just a reminder to anyone interested in the first-time homebuyers tax credit or the current homeowners tax credit you must have a contract by April 30!!!!!

call me with any of your real estate needs!

EMILY LEE
606-499-7836

http://www.harrogatetnhomes.com/
http://www.emilyleerealty.com/

REALTY GROUP II
423-869-5111

Transportation Costs Hurt Housing Affordability

Transportation Costs Hurt Housing Affordability


A new study contends that only 39 percent of U.S. communities are affordable for typical households when the cost of transportation is included in the calculation of housing costs.



The Center for Neighborhood Technology analyzed the Housing + Transportation Affordability Index, which examined 161,000 neighborhoods housing 80 percent of the U.S. population, and concluded that for most families, transportation is the second-largest household expense.



It is also a fairly unmanageable one, the study concluded, because it is difficult for families to estimate the full cost of a location before they move there. Gas prices and employment demands aren’t very predictable for many.



Factors that can help people control transportation costs include walkable neighborhood streets, access to public transit, and nearby retail.



Source: Center for Neighborhood Technology (03/23/2010)

Emily Lee

606-499-7836

Realty Group II

423-869-5111

Current Home Owners! Info on Tax Credit

Who Qualifies for the Extended Credit?



•• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.

•• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.


To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.


Which Properties Are Eligible?


The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.






How Much Is Available?


The maximum allowable credit for first-time home buyers is $8,000.






The maximum allowable credit for current homeowners is $6,500.






How is a Buyer's Credit Amount Determined?


Each home buyer’s tax credit is determined by two additional factors:






1.The price of the home.


2.The buyer's income.


Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.






Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.






These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.






If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?


Yes, some buyers may still be eligible for the credit.






The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.






Can a Buyer Still Qualify If He/She Closes After April 30, 2010?


Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.






Will the Tax Credit Need to Be Repaid?


No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.


to read full article please click HERE.
Source Realtor.com

EmilyLeeRealty.com

.

Make Under $30,000 a yr.?

If you make under $30,000 a yr. did you know that you may be eligible for a 100% financed loan? That means no down payment! You may also be able to get a 1% interest rate!!! Stop paying rent and throwing your money away!!

Call or E-mail Me Today for More Information and How to Get Started!!!

EMILY LEE 606-499-7836
www.EmilyLeeRealty.com

7 Tips for First Time Home Buyers

1. Look up local listings to see what price range houses are going for. Follow this link to Realtor.com.



2. Check to see if you can afford a monthly payment by using a mortgage calculator. Follow this link to a mortgage calculator.



3. To see if you can afford this mortgage payment use an affordability calculator. Follow this link to an affordability calculator.



4. Find a buyers agent to represent you. You will need help you through your home search, the ins and outs of finding something in your budget that suits your needs, going through the offer, inspection and closing steps that are involved. If you don't get a buyers agent to represent you the agent is automatically working for the seller.



5. Get pre-approved!!! Never start out your search not knowing if you can even get a loan or not, this will also make your offer to a seller more appealing.



6. Start saving!!! The more earnest money you can put down on a contract the more serious your offer will seem to a seller.



7. Ask about title insurance fees, survey charges, escrow fees, and loan origination fees, all of this may be due at closing so it’s good to know ahead of time what you’ll be paying for.

5 Common First Time Home Buyer Mistakes

First time home buyers, more commonly known as “property virgins”, are characterized for having unrealistic expectations on buying real estate.

They want everything for a next to nothing price.

The average first time home buyers are ages 24-34 and this is the first real investment they have ever made.

Now with the market leaning more in their favor, opening the door to many who 3 years ago could never have afforded a home, they face a new struggle of competing against investors on getting that great deal on a house.

Investors have spent more time researching the market, have more money to put down and don't take as long to make a decision on to buy or not to buy.

Below I have attached a list of the 5 most common mistakes first time home buyers make, provided by Real Estate Checklists and Systems.

To help you avoid making a "property virgin" mistake call a local Realtor.
To contact me: e-mail EmilyLeeRealty@yahoo.com or call 606-499-7836


5 Common First Time Home Buyer Mistakes

1. They don’t ask enough questions of their lender and end up missing out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right agent who’s willing to help them through the home buying process.

4. They don’t do enough to make their offer look appealing to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Source: Real Estate Checklists and Systems

Click here to visit my personal website

Measuring The Benefits Of Home Ownership

Thinking about getting into Home Ownership???? Now is the best time to jump into this lifelong investment! With the first time homeowner’s tax credit of $8,000 and the market back on the rise…. all waiting around will get you is a larger mortgage payment…..


Why should you buy?

When you purchase a home instead of rent you are making an investment into your future, whereas with renting you are just giving someone else your money. When you own a home you can deduct your mortgage loan interest cost from you federal income taxes and your property taxes as well.


How can you get a loan if you can’t afford a large down-payment or have bad credit?

There are many federal mortgage programs that offer loans to people just like you! They offer low down payments or even 100% financing with low monthly payments.


Can you afford a mortgage payment if you’re a single parent?

YES!!! The government offers homeownership grants or special programs to single parents just like you! The key is getting with an agent and getting pre-qualified before you start your home search.


What is the first thing you should do when you’re thinking about home ownership?

Contact a local Realtor!!! They can lead you in the right direction from Step 1 until closing day. Chose a realtor who has your best interest at heart and are willing to help you work through all the steps from getting pre-qualified to choosing the right home for you. To contact me :
send me an e-mail at EmilyLeeRealty@yahoo.com or call me at (606) 499-7836


Below I have attached a link to a article that contains a wealth of information to those considering buying a home, Check it Out!

Measuring The Benefits Of Home Ownership